Turn Your Work Drives Into Tax Deductions – Here’s How!

Shaun Chaudhry
Apr 15
2 min read

If you use your car for work-related purposes—other than just getting to and from your regular workplace—you could be leaving money on the table if you’re not claiming car expenses on your tax return. Done right, this is one of the easiest and most effective ways to boost your refund.

What Kind of Car Use Can You Claim?

You may be eligible to claim car expenses if you:

Travel during the day or night for work duties.
Attend off-site meetings or work-related conferences.
Drive between different workplaces (not including your home).
Go from your regular workplace to another temporary location.
Start your day at a temporary site and then travel to your usual workplace.
Visit multiple job sites in a day.
Carry heavy or bulky tools or equipment that can’t be safely stored at work.

These are all considered work-related trips that may be tax-deductible under ATO guidelines.

When You Can’t Claim Car Expenses

It’s important to know what doesn’t qualify. You can’t claim:

Regular travel between your home and workplace (even if it’s a long distance).
Any expenses that your employer has reimbursed.

Two Easy Ways to Claim Car Expenses

There are two ATO-approved methods to claim your work-related car usage:

Cents Per Kilometre Method: A simple option that lets you claim without a logbook—perfect for those who do occasional work travel. You just need to estimate your business kilometres accurately.
Logbook Method: Ideal for those who use their car frequently for work. You’ll keep a logbook for 12 continuous weeks, record all work and personal trips, and retain receipts for all car expenses. Once complete, you can use the business-use percentage to claim a portion of all your car running costs.

Both methods have their benefits depending on how often you use your vehicle for work, so it’s worth choosing the one that gives you the best result.

What About Motorbikes, Utes, Vans & Trucks?

If you use a motorcycle, van, ute, or truck (with a capacity over one tonne) or a vehicle that carries nine or more passengers, you’ll claim your expenses under the travel expenses section instead. But just like with cars, you’ll need to keep a logbook and records of all costs to make a valid claim.

How Proactive Can Help!

At Proactive Financial Hub, we make it simple for you to get the most out of your tax return. If you use your car for work-related travel, our expert team can guide you through the process of claiming car expenses—whether you're using the cents per kilometre method or the logbook method.

Whether you're an employee, sole trader, or business owner, we provide tailored tax and accounting solutions to ensure you're not missing out on deductions you’re entitled to.

📞 Contact Us: 0424 513 740📧 Email: info@proactivefh.com.au

🌐 Website: www.proactivefh.com.au

Let’s make tax time easier—and more rewarding—for you.